The RRSP turns 60 this year, and it’s a favourite tool for many investors. But not everyone takes advantage of the RRSP’s benefits: as of 2014, roughly 24 million Canadians have combined RRSP room of more than $951 billion. That’s approximately $39,628 of unused room for every tax filer. And, Statistics Canada says that among people aged 25 to 54 the number of annual RRSP contributors fell 16% between 2000 and 2013.
If Canadians en masse maximized their RRSPs, this could generate a combined tax savings of $336 billion, or approximately $14,000 per Canadian.
If you or someone you love has RRSP room, make sure they understand what they’re missing out on. Read and share these articles for help:
- How to fix RRSP overcontributions
- Moving? What to do with your U.S. retirement account
- What happens to RRSPs in bankruptcy